Advances in Natural and Applied Sciences 7, no. 5 (2013): 425-435

 

FACTORS DETERMINING LEVEL OF INTERNAL CONTROLS IMPLEMENTATION AMONG NON PROFIT ORGANIZATIONS IN MALAYSIA

 

Noor Fairose Saat, Intan Salwani Mohamed, Nor Balkish Zakaria, and Normah Omar 

 

Abstract

Realizing the importance of internal controls, this study extends the internal control system (ICS) importance debate to third sector of economy, Non Profit Organizations (NPOs). The central argument of this study is that to investigate variables that lead to be factors that influenced the level of internal controls implementation among NPOs in Malaysia by viewing the NPOs annual reports and questionnaire survey on the NPOs implementation of internal controls. Eliminating the weakness or problems identified may improve the control over the NPOs resources, strengthen accountability, improve financial reporting and improve relationship with the NPOs stakeholder, thereby enhancing their desire to continue supporting the NPOs with financial contributions. Development of C-LICI (Charity Level of Internal Control Implementation) model would contribute valuable finding for the development of an ICS framework that could be specifically used by NPOs.

Keywords:  Internal control, Non Profit Organizations